Plus, Benjamin Netanyahu sworn in for sixth term as Israel's prime minister.
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According to the SEC, FTX founder and former CEO Sam Bankman-Fried used customer deposits to make $100M venture investments. Bankman-Fried, through FTX Ventures, invested $100M in fintech company Dave and another $100M in Web 3 company Mysten Labs. More: - Bankman-Fried is facing multiple criminal fraud charges over his handling of customer deposits at FTX.
- Bankman-Fried is accused of diverting customer deposits from FTX to his hedge fund, Alameda Research, which then used the funds for risky trades and loans.
- FTX filed for Chapter 11 bankruptcy in November.
- If FTX bankruptcy trustees can determine that consumer’s deposits funded Bankman-Fried’s investments, those funds could be reclaimed.
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According to a recent report by the House Oversight and Reform Committee and the Energy and Commerce Committee, the FDA is accused of collaborating excessively with Biogen while it assessed the company’s Alzheimer’s treatment Aduhelm in 2021. More: - The report was based on an 18-month investigation into the FDA’s approval process of the controversial drug.
- The House committees said the FDA’s approval process for Aduhelm was “rife with irregularities,” raising serious concerns about protocol lapses at the agency.
- The FDA approved Aduhelm for treating Alzheimer’s disease despite objections from a group of outside medical experts who advised the FDA not to allow the drug on the market.
- The drug showed conflicting results from trials of its efficacy.
- Following the FDA’s approval, three members of the independent panel resigned.
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According to Barron’s, Elon Musk could have had his first margin call this week on Tesla shares he used to finance his $44B Twitter purchase. Musk used a $12.5B margin lending facility to purchase Twitter. More: - Tesla executives can borrow up to 25% of the value of their Tesla stock, using their shares as collateral for the loan.
- The exact amount of Tesla shares Musk used in financing the purchase of Twitter is not known.
- Based on the original loan agreement, $12.5B in loans would need to be backed by $62.5B of stock collateral.
- The initial margin call in that agreement happens when the loan-to-value ratio falls below 35%.
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The DOJ has sued AmerisourceBergen over its role in fueling the opioid epidemic. The drug distributor is accused of contributing to the opioid crisis by failing to report suspicious orders to law enforcement. More: - If found guilty, the firm faces billions of dollars in civil penalties.
- The DOJ alleges AmerisourceBergen began increasing its sales to independent pharmacies in 2010, knowing the controlled substances would be diverted to illegal channels.
- AmerisourceBergen is accused of selling large quantities of controlled substances to an independent pharmacy in Beckley, West Virginia, even after one of its auditors learned of drug deals in the pharmacy’s parking lot.
- In a statement, AmerisourceBergen blamed the Drug Enforcement Administration for failing to act after the firm supplied the agency with information on drug sales misconduct.
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Southwest Airlines plans to resume its regular schedule on Friday. The airline has canceled more than 15,000 flights since last Thursday, leaving hundreds of thousands of customers stranded over the Christmas holiday weekend. More: - The airline has also resumed ticket sales for Friday after halting all sales to stabilize its operations.
- Southwest’s operations fell apart following the winter storm that swept across the U.S. last week.
- The storm left more than 60 people dead, with more than half of the deaths in western New York.
- Southwest expects the disruptions to impact its Q4 results.
- The company said it would take several weeks to fulfill affected travelers’ reimbursement requests.
- Southwest promised to improve its crew scheduling systems, noting it has already started the work on modernizing its systems.
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The White House signaled it would address some of the concerns European and Asian EV makers have shared regarding the new U.S. tax credit program for EVs. The new tax credit program requires all vehicles to be assembled in North America to qualify for the consumer credit. More: - The tax credit program for EVs provides up to $7,500 per vehicle in tax incentives under the Inflation Reduction Act.
- The EU, U.K., Japan, and South Korea raised complaints that the “assembled in North America” requirement discriminated against their companies and might violate international trade rules.
- On Thursday, the Treasury Department released documents that provide a way for EVs assembled abroad to qualify for incentives through a separate commercial EV program.
- To qualify, the vehicles would have to be purchased for lease by businesses, not for resale.
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- Brazilian soccer legend Pelé passed away on Thursday at the age of 82. Pelé led the Brazilian team to win three world cups over his 22-year career.
- The average rate on the standard 30-year fixed mortgage rose to 6.42% from 6.27% last week, marking its largest calendar-year increase in 2022. The average rate on the traditional 30-year fixed mortgage was about 3.11% a year ago.
- Benjamin Netanyahu was sworn in Thursday for his sixth term as Israel's prime minister. Netanyahu is set to lead the most rightwing administration in the country's history.
- The world's wealthiest lost about $1.4T in their net worth this year. Elon Musk has lost $138B from his net worth since the start of the year. Jeff Bezos, Changpeng Zhao, and Mark Zuckerberg lost $254B collectively from their net worth.
- Three Founders wished they could invest in fractional real estate shares while browsing Zillow. So they made Arrived.*
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- January 31 - Growth Summit 2023 (Register Here)
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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